SP500: Weekly Reversal Candle Is Pointing For A Deeper Retracement

The markets were in risk-off mode during the Asian trading hours as respond
to Crimea's votes results. If situation would get worse then be aware of even
lower levels on S&P while Crude oil and Natural gas could find a support.

On the Weekly chart of the S&P500 we have seen a bearish close at the
end of the last week that erased all of the gains from a week earlier. This
can also be an important evidence for a bearish case in the following days.

S&P500 Weekly - Candlesticks

S&P500 Daily

S&P500 has been in bullish mode since February but it looks like that
the direction of a trend could be changing now after a rally up to 1880/1920
Fibonacci and channel resistance area, where we see zone for a completed fifth
wave in wave 5) of (3). So far, market is reversing nicely down with a weekly
close price at 1839 so we suspect that market has turned bearish now for a
three wave pullback down in blue wave (4).

S&P500 Daily Elliott Wave Analysis

S&P500 4h

On the 4h chart of the S&P500 Futures contract we are looking at the Elliott
Wave count where structure might have finally formed a top after very strong
sell-off in the last couple of days from 1886. A decline however is still not
a clear impulse, but another intraday leg down to 1800/1810 will suggest that
trend has turned bearish or at least sideways. In that case traders could be
interested in shorts opportunities.

Grega is based in Slovenia and has been involved in markets since 2003. He
is the owner of www.ew-forecast.com,
but before that he was working for Capital Forex Group and TheLFB.com. His
feature articles have been published on: SafeHaven.com, FXstreet.com, Thestreet.com,
Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com,
etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016.
At www.ew-forecast.com he helps clients
and educate them about the Elliott wave prinicple and how to label and track
unfolding patterns in real time. His approach to the markets is mainly technical.
He uses a lot of different methods when analyzing the markets such as candlestick
patterns, MA, technical indicators etc. His specialty however is Elliott Wave
Theory which could be very helpful especially if you know how to use it in
combination with other tools/indicators.

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